We find the market’s view that the world can emerge from the pandemic as if nothing ever happened to be preposterous. There will be lasting damage as COVID-19 appears set to continue wreaking havoc through the spring. For example, many of the unemployed won’t have jobs to come back to, while the longer they remain out of work, the more their skills erode.
In addition, beyond the pandemic are a host of risks that could threaten the financial system. Foremost is the massive debt that has been issued since the global financial crisis and that has accelerated with the pandemic.
Gold Should Still Be In Your PortfolioThe traditional 60% stock / 40% bond portfolio no longer works when interest rates are at zero. Many investors are seeking alternatives to generate the returns that are missing in their bond allocation. Gold, private equity and bitcoin are among the limited number of alternative asset classes to choose from. Gold is the only one with an established history as a store of wealth and hedge against tail risks.
MVIS Global Junior Gold Miners Index
11/30/2019-11/30/2020
